YouTube video policy takes on iTunes

YouTube’s plan to provide «every» music video free is a «nail in the coffin» of the paid-for online content business model and potentially threatens the dominant position of Apple’s iTunes, according to City analysts.The video filesharing website, where 100m clips are watched every day, is in talks with Warner Music and EMI to offer music video downloads for free. Revenue will be provided by advertising.

Apple has been the dominant driver in online music downloads because of its deals with record labels and the ease of use of the iPod and iTunes online store.

However, Apple uses proprietary technology that only allows its songs and videos to be played on its iPod devices, potentially limiting its long-term revenue potential.

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